Sensex, Nifty bounce back; PSU banks correct for fourth day

Key equity indices bounced back in mid-afternoon trade. At 14:22 IST, the barometer index, the S&P BSE Sensex, was up 3.98 points or 0.01% to 46,894.32. The Nifty 50 index added 5.00 points or 0.04% at 13,745.70.

The broader market underperformed the benchmark indices. The S&P BSE Mid-Cap index fell 0.15% while the S&P BSE Small-Cap index lost 0.08%.

Sellers outpaced buyers. On the BSE, 1163 shares rose and 1732 shares fell. A total of 171 shares were unchanged.

Buzzing Index:

The Nifty PSU Bank index rose 1.26% to 1,755.70. The index has lost 5.64% in four sessions.

CBI (down 2.81%), Union Bank of India (down 2.66%), Indian Bank (down 2.65%), Bank of India (down 2.58%), Jammu and Kashmir Bank (down 2.31%), Canara Bank (down 1.85%), Bank of Maharashtra (down 1.82%), Bank Of Baroda (down 1.8%), UCO Bank (down 1.54%), Indian Overseas Bank (down 1.35%) and Punjab National Bank (down 1.22%) declined

State Bank of India rose 0.17%.

Stocks in Spotlight:

Borosil Renewables fell 1.25% to Rs 161.30. The company's board approved allotment of 1,58,04,030 equity shares at a price of Rs 126.55 per share, aggregating to Rs 200 crore, to the eligible qualified institutional buyers in the qualified institutions placement (QIP). The issue price is at 4.99% discount to the floor price of Rs 133.19 per equity share. The QIP issue opened December 14 and closed on December 17.

In its placement document filed with the bourses, Borosil Renewables said that it intends to use the net proceeds to meet the capital expenditure for setting up a new furnace of 500 TPD with tempering/coating facilities. The new furnace will be placed in a facility adjacent to our existing manufacturing facility at Bharuch, Gujarat. The net proceeds shall also be used for general corporate purposes.

Surya Roshni jumped 2.58% to Rs 343.45. The company has bagged a Rs 72.62 crore order for supplying API 5L Grade 3LPE coated and bare pipes from Indian Oil Corporation. The order is based in Champaran Dist, Motihari & Muzaffarpur in Bihar and in Thiruvallur Dist of Tamil Nadu. The company further added that the order is to be executed within eight months.

Numbers to Track:

In the foreign exchange market, the partially convertible rupee edged lower to 73.52 as compared to its previous closing of 73.59.

The yield on 10-year benchmark federal paper rose to 5.972% compared with its closing of 5.952% in the previous trading session.

MCX Gold futures for 5 February 2021 settlement shed 0.46% to Rs 50,189.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, added 0.10% to 89.91.

In the commodities market, Brent crude for February 2020 settlement lost 6 cents to $51.44 a barrel. The contract gained 42 cents or 0.82% to settle at $51.50 in the previous trading session.

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